OTTAWA (dpa-AFX) - Cameco (CCJ, CCO.TO) said that a tribunal of international arbitrators ruled in favour of Cameco in its contract dispute with Tokyo Electric Power Company Holdings or TEPCO.
The Tribunal rejected TEPCO's assertion that it had the right to terminate its uranium supply agreement alleging force majeure, and awarded damages to Cameco of US$40.3 million.
Cameco said it was pleased that the Tribunal agreed that TEPCO was not entitled to terminate the supply agreement, but Cameco was disappointed with the amount of damages awarded. Cameco's's claim for damages was about US$700 million.
Separately, Cameco responded to the decision by President Donald Trump to implement no new trade restrictions on uranium imports into the United States following the Section 232 investigation into the matter.
'We are pleased with this decision,' said Cameco President and CEO Tim Gitzel. 'Uranium supplied by Cameco or Canada for zero-carbon energy generation has never been a threat to U.S. national security, and we worked hard to emphasize that distinction throughout this process.'
The U.S. President also announced the establishment of a United States Nuclear Fuel Working Group to further analyze the state of U.S. nuclear fuel production and report back within 90 days with findings and recommendations to enhance domestic capabilities if deemed to be necessary. The initiative may broaden the range of options that could be considered to support the U.S. uranium industry beyond the trade-related remedies permitted under Section 232.
Copyright RTT News/dpa-AFX